$AGT ｜4-hour RSI(14) 75.1｜Overbought
Before talking about position sizing, let's first understand RSI.
In terms of calculation, RS = average gain ÷ average loss, and RSI = 100 − 100 ÷ (1 + RS). The averages use Wilder's smoothing, not a simple arithmetic mean.
When RSI enters overbought or oversold territory, a more reliable response is to first ask yourself: Which way is the broader trend heading? Where are recent price levels? Can this position withstand further volatility?
Cross-checking multiple data points is more reliable than looking at just one, but no amount of signals can provide a certain answer.
Before talking about position sizing, let's first understand RSI.
In terms of calculation, RS = average gain ÷ average loss, and RSI = 100 − 100 ÷ (1 + RS). The averages use Wilder's smoothing, not a simple arithmetic mean.
When RSI enters overbought or oversold territory, a more reliable response is to first ask yourself: Which way is the broader trend heading? Where are recent price levels? Can this position withstand further volatility?
Cross-checking multiple data points is more reliable than looking at just one, but no amount of signals can provide a certain answer.